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President Donald Trump has announced that a new series of tariffs will be applied universally to all countries rather than being limited to those with significant trade imbalances with the United States. This declaration is set to coincide with his forthcoming announcement of extensive import taxes, which he has termed “America’s Liberation Day.”
These new tariffs will be in addition to existing levies that the U.S. government has already imposed on aluminum, steel, and automotive imports, alongside heightened tariffs on goods sourced from China.
In the Asian markets, investor sentiment has taken a hit, with shares declining as concerns mount regarding the potential ramifications of these tariffs on the global economic landscape.
Trump indicated to reporters while aboard Air Force One that the tariffs would initially apply to “essentially all of the countries that we’re talking about.”
Despite having hinted at the possibility of moderating his tariff strategy last week—suggesting potential reductions in rates compared to those currently employed by some countries—his recent statements seem to indicate a more aggressive stance.
Kevin Hassett, an economic advisor at the White House, clarified that discussions have been focused on 10 to 15 countries that present the most significant trade deficits with the U.S., although he did not disclose specific names.
The Trump administration views tariffs as a protective measure for the American economy against perceived unfair foreign competition. Moreover, they are seen as tools for negotiating more favorable trade agreements for the U.S.
Trump’s advisers reinforced over the weekend that the tariffs could potentially generate trillions of dollars in revenue and foster job creation domestically. Pete Navarro, a senior trade advisor, projected that imposing a tax on all vehicle imports could yield approximately $100 billion, while the overall tariffs could raise around $600 billion, which would account for about 20% of total imports into the U.S.
A recent White House fact sheet argues that implementing a 10% tariff across the board could lead to the creation of nearly 3 million jobs in the United States. However, fears surrounding the onset of a trade war are causing turbulence in financial markets and stoking worries of a recession.
In early trading on Monday, stock indices in Asia reflected this anxiety; Japan’s Nikkei 225 index fell by over 3%, the ASX 200 in Australia declined by 1.6%, and South Korea’s Kospi dipped around 2%.
The stakes are becoming increasingly high for nations looking to negotiate trade agreements with the United States, including the United Kingdom. Meanwhile, entities such as the European Union and Canada are preparing countermeasures in response to the anticipated tariffs.
In a separate development, Trump announced that a deal concerning the popular app TikTok, owned by the Chinese company ByteDance, is expected to be finalized by a deadline set for Saturday. This ultimatum was issued in January, requiring the platform to secure a non-Chinese buyer or face a ban in the U.S. due to national security concerns. Compliance with the impending law, enacted under the previous Biden administration, is projected to take effect as scheduled.
Source
www.bbc.com